Consumers Still Behind As Late Credit Card Bills Stay High

The AP reports:

The proportion of consumers behind on their credit card bills remained near record-high levels in the July-September period as high gasoline prices and rising interest rates continued to put stress on personal budgets.

The American Bankers Associated reported Tuesday that the percentage of credit card accounts 30 or more days past due dipped slightly to 4.74 percent in the July-September quarter after having hit an all-time high of 4.81 percent in the spring.

Even with the slight decline, consumer card delinquencies in the late summer and early fall were at the third-highest level on record, prompting concerns about more problems to come.

“Signs of financial stress still are present,” said James Chessen, ABA's chief economist. “The persistent interest-rate increases by the Federal Reserve and record-high gas prices in the third quarter provided a one-two punch that continued to inflict pain on personal budgets.”

2006 should be an interesting year.